Selective Insurance Group (NASDAQ:SIGI) Announces Earnings Results, Beats Expectations By $0.46 EPS

Selective Insurance Group (NASDAQ:SIGI) posted its earnings results on Thursday. The insurance provider reported $2.37 earnings per share for the quarter, topping analysts’ consensus estimates of $1.91 by $0.46, Zacks reports. Selective Insurance Group had a net margin of 9.10% and a return on equity of 14.51%. The business had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same quarter in the prior year, the firm posted $1.85 EPS.

Selective Insurance Group Price Performance

Selective Insurance Group stock traded up $5.57 during mid-day trading on Friday, hitting $97.31. 219,897 shares of the company traded hands, compared to its average volume of 537,090. Selective Insurance Group has a one year low of $72.78 and a one year high of $101.25. The stock has a market cap of $5.80 billion, a price-to-earnings ratio of 12.07 and a beta of 0.26. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.29 and a current ratio of 0.29. The stock has a fifty day moving average price of $88.83 and a 200-day moving average price of $89.76.

Selective Insurance Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 16th will be given a dividend of $0.48 per share. The ex-dividend date is Monday, November 16th. This is a boost from Selective Insurance Group’s previous quarterly dividend of $0.43. This represents a $1.92 annualized dividend and a yield of 2.0%. Selective Insurance Group’s dividend payout ratio (DPR) is presently 21.34%.

Insider Activity at Selective Insurance Group

In other news, EVP Michael Lanza sold 17,100 shares of the stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $94.04, for a total value of $1,608,084.00. Following the transaction, the executive vice president owned 16,565 shares of the company’s stock, valued at $1,557,772.60. This represents a 50.79% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.82% of the stock is owned by insiders.

Analyst Ratings Changes

Several research analysts have commented on the stock. Oppenheimer reissued an “outperform” rating and issued a $115.00 price target on shares of Selective Insurance Group in a report on Tuesday, October 13th. Keefe, Bruyette & Woods increased their price objective on Selective Insurance Group from $101.00 to $102.00 and gave the stock a “market perform” rating in a research report on Thursday, July 30th. Weiss Ratings lowered Selective Insurance Group from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, September 1st. Morgan Stanley lifted their price objective on Selective Insurance Group from $72.00 to $80.00 and gave the company an “underweight” rating in a research note on Monday, July 6th. Finally, BMO Capital Markets restated a “market perform” rating on shares of Selective Insurance Group in a research report on Wednesday. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Selective Insurance Group currently has an average rating of “Hold” and a consensus price target of $101.00.

Key Selective Insurance Group News

Here are the key news stories impacting Selective Insurance Group this week:

• Positive Sentiment: Q3 earnings exceeded expectations. Selective reported adjusted EPS of $2.37, above the $1.91 consensus estimate and up from $1.85 a year earlier. GAAP net income rose 12% to $126.4 million, or $2.11 per diluted share. Selective Insurance Q3 Earnings Top Estimates
• Positive Sentiment: Shareholder returns were increased. The board raised the quarterly dividend 11.6% to $0.48 per share, equivalent to $1.92 annually and an indicated yield of about 2.1%. It also authorized a new $200 million share-repurchase program, which could support per-share earnings and signal confidence in the company’s valuation. Selective Insurance Announces Equity Buyback
• Positive Sentiment: Investment income and underwriting remained solid. After-tax net investment income increased 16% to $127.3 million, while the 96.8% GAAP combined ratio indicates underwriting profitability. Full-year guidance calls for a 96.5%–97.5% combined ratio and $490 million of after-tax net investment income. Selective Reports Q3 Results
• Neutral Sentiment: Selective appointed Jacob E. Rothfuss as executive vice president and president of Standard Lines, effective no later than April 2027. The leadership change may improve execution, but its financial impact is not yet clear. Selective Appoints Jacob E. Rothfuss
• Negative Sentiment: Premium volume and revenue declined year over year. Net premiums written fell 7% to $1.123 billion, and total revenue declined 2% to approximately $1.326 billion. This highlights slower insurance growth despite the earnings beat.

About Selective Insurance Group

Selective Insurance Group, Inc is a holding company for a group of property and casualty insurance subsidiaries. Founded in 1926 and headquartered in Branchville, New Jersey, the company provides insurance products and related services primarily through a network of independent agents.

Selective serves commercial, personal and public-sector customers. Its commercial offerings include business owners policies, commercial automobile, workers’ compensation, general liability, commercial property and other specialty coverages.